DBEA55AED16C0C92252A6554BC1553B2 Clicky DBEA55AED16C0C92252A6554BC1553B2 Clicky
July 19, 2024
Boeing HQ
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Today’s key stories focus on Boeing’s planned acquisition of Spirit AeroStructures, with a deal reportedly almost complete, but different from the initial offer in that stock, rather than cash, will be utilized for the transaction.  That will dilute existing shareholders by approximately 4%, and reflects Boeing’s poor cash position, which should be confirmed when second quarter earnings are released next month.  We believe that Boeing’s cash position and increasing debt may result in losing its coveted “investment grade” bond rating later this year.

In other stories, Leonardo is shutting down 787 fuselage production for the next 4 months in response to Boeing’s rate cut.  The yo-yo impacts on the supply chain are having a toll, as another story about how Boeing’s issues are precluding supply growth for Airbus outlines.  This is a good read.

Boeing will not bring the test aircraft for its 737 MAX 7 and MAX 10 models, nor the 777X testbed to Farnborough, as the company needs to continue to focus on certification to restore its cash flow.  In the meantime, 737 MAX victim families are asking for an “independent monitor” over Boeing.

An interesting story in JD Supra talks about the DOJs conundrum when considering criminal charges about Boeing, and floats an independent monitor concept as an interesting element of a solution, given the FAAs proven inability to enforce regulations at Boeing. 

Links to today’s key stories follow:

  • Boeing talks to buy Spirit AeroSystems have last-minute twist- WSJ
  • Boeing’ Spirit Aero bid values 737 supplier at $35 a share – Yahoo
  • Families of Boeing 737 MAX crashes ask for ‘independent monitor” – Seattle Times
  • Leonardo to pause Boeing 787 fuselage work at Grottaglie site – Flight Global
  • Boeing during Farnborough will leave 737 MAX and 777X test aircraft at home – Air Current
  • Analysis: Engine makers Boeing dilemma helped to stall Airbus’ output plans – Yahoo
  • The DOJ Boeing conundrum – JD Supra
author avatar
Ernest Arvai
President AirInsight Group LLC

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